This week’s distribution increases were mainly focused on two of the energy majors and several master limited partnerships. In one occasion with master limited partnerships both the general and the limited partners received distribution increases, while in another only the general partners received a raise in quarterly distributions.
Dividend increases typically reflect management’s confidence in companies’ financial performance and their ability to meet shareholders’ expectations. The companies which met these goals include:
Chevron Corporation’s (CVX) board of directors declared a 4.60 % increase to its quarterly dividend to 68 cents per share. The company operates as an integrated energy company worldwide. Chevron Corporation is a dividend achiever, which has increased its quarterly dividend in each of the past twenty-two years. The stock currently yields 4.00%. Check my analysis of Chevron (CVX).
Kellogg Company’s (K) board of directors declared a 10.30 % increase to its quarterly dividend to 37.50 cents per share. The company engages in the manufacture and marketing of ready-to-eat cereal and convenience foods. Kellogg Company is a former dividend aristocrat, which has fought back to regain its status of a dividend growth stock since 2005. The stock currently yields 3.10%.
The board of Royal Dutch Shell (RDS.A)(RDS.B) increased its dividend for the second half of the year by 5% to 84 cents per share. The company engages in the exploration, production, and trading of various energy resources worldwide. Royal Dutch Shell is an international dividend achiever, which has increased its quarterly dividend in each of the past sixteen years. The stock currently yields 6.40%.
Harleysville Group’s (HGIC) board of directors declared an 8 % increase to its quarterly dividend to 32.50 cents per share. The company engages in the property and casualty insurance business primarily in the eastern and Midwestern United States. Harleysville Group Inc.is a dividend achiever, which has increased its quarterly dividend in each of the past twenty-two years. The stock currently yields 4.00%.
American Water Works Company, Inc. (AWK) announced that its board of directors hs declared a 5.00 % increase to its quarterly dividend to 21cents per share. American Water Works Company, Inc provides water and wastewater services to residential, commercial, and industrial customers in the United States and Canada. This is the company’s first dividend increase since going public in 2008. The stock currently yields 4.10%.
Lazard Ltd (LAZ) announced that its board of directors has declared a 25 % increase to its quarterly dividend to 12.50 cents per share. The company operates as a financial advisory and asset management firm worldwide. This is the third dividend increase for the company since going public in 2005. The stock currently yields 1.30%.
Digital Realty Trust, Inc. (DLR) increased its quarterly dividend by 9.10% to 36 cents per share. The company engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. This is the fifth consecutive annual dividend increase for this REIT since it went public in 2004. The stock currently yields 3.60%.
Alliance Resource Partners LP (ARLP) announced an increase to its quarterly distributions to 74.50 cents per share. This represents a 2% increase over last quarter’s distribution and a 12.90% increase over its distribution announced this time last year. This master limited partnership engages in the production and marketing of coal for utilities and industrial users in the United States. Alliance Resource Partners LP has increased its quarterly distributions in each of the past seven years. The units currently yield 8.30%.
El Paso Pipeline Partners LP (EPB) which last week approved a 1% increase over the last quarterly distribution to 33 cents per unit, announced its intentions to further raise its quarterly distributions to 35 cents/unit in the fourth quarter.
This represents a 6% increase over last quarter’s distribution and a 16.70% increase over its distribution announced this time last year. This master limited partnership engages in the ownership and operation of natural gas transportation pipelines and storage assets. Once the board of the general partner approves the new rate, this will be the 7th consecutive distribution increase for El Paso Pipeline Partners, L.P. since it went public in 2007. The units currently yield 6.70%.
The board of directors of Inergy, L.P.’s (NRGY) general partner announced an increase to its quarterly distributions to 66.50 cents per unit. This represents the 31st consecutive quarterly increase and an approximate 6.4% increase over the distribution for the same quarter of the prior year. This master limited partnership’s operations include the retail marketing, sale, and distribution of propane to residential, commercial, industrial, and agricultural customers. The units representing limited partnership interests in this MLP currently yield 9.00%.
The Board of Directors of Inergy Holdings GP, LLC (NRGP) announced an increase to its quarterly distributions to 78 cents per unit. This represents an approximate 4% increase over the previously declared quarterly distribution of $0.75 per limited partner unit and an approximate 28% increase over the distribution for the same quarter of the prior year. Inergy Holdings, L.P.’s assets consist of its ownership interests in Inergy, L.P., including limited partnership interests, ownership of the general partners, and the incentive distribution rights. Inergy Holdings GP has increased its quarterly distributions for fifteen consecutive quarters. The units representing the General Partner interests in this MLP currently yield 7.30%.
The Board of Directors of Energy Transfer Equity, L.P. (ETE) announced an increase to its quarterly distributions to 53.50 cents per unit. This represents an approximate 2% increase over the previously declared quarterly distribution of 52.50 cents per unit and an approximate 11.40% increase over the distribution for the same quarter of the prior year. Energy Transfer Equity, L.P. (ETE) is a publicly traded partnership, which owns the general partner of Energy Transfer Partners, L.P. and approximately 62.5 million ETP limited partner units. The units representing the General Partner interests in this MLP currently yield 7.30%.
Checking the pulse of dividend increases is an exercise whose goal is to uncover potential dividend growth plays that I might have otherwise missed out on. Just because I wrote about a certain stock however, does not mean that I am going to add it to my portfolio. I need to research it and make sure that it could afford growing its generous distributions.
Full Disclosure: Long CVX
- MLPs Dominate Distribution Increases
- Master Limited Partnerships (MLPs)
- General vs Limited Partners in MLP's
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